Technical Report: USD/CAD Maintains Tight Range
ICN.com | Apr 23, 2014 05:14AM ET
The pair is trading weakly as the technical catalysts didn't change since yesterday, whereas the pair is stable above 38.2% correction at 1.3780 levels showing on graph. Stability above the referred to level is positive especially with achieving the positive crossover on Stochastic and RSI stabilizing above line 50.
The pair should stabilize above the resistance level 1.3850 again to bring the pair back again above Linear Regression Indicators. Unless the pair breaks 1.3720 levels, the upside move remains valid, but the pair has to stabilize above 1.3780 to strengthen the bullish possibility.
The pair is currently stable above Linear Regression Indicators and above 1.6820 which is positive and could push the pair to the upside. AROON Indicator shows ongoing weakness, as we might witness a negative crossover if the pair broke 1.6780 levels.
Generally, we depend today on stabilizing above 1.6780 to expect a bullish wave. Of note, stabilizing above 1.6820 is significant to cancel the possibility of a bearish correction. MACD Indicator is still positive supporting our positive outlook.
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The USD/JPY settles above the 50-days SMA, formed a daily pin bar above the average yesterday, which suggests that price remains well supported and the bullish rebound will probably continue. Price is facing 102.70 intraday resistance level, which if taken will probably extend the upside further. We maintain our bullish bias as long as stable above 102.30 over intraday basis.
The USD/CHF is retracing slightly lower following the recent bullish rebound and recovery, where price settles back above the 50-days SMA. The price has formed a long-legged doji candle yesterday, hinting a potential downside pullback. Accordingly, we prefer to wait for a confirmation over the lower time interval.
The USD/CAD maintains the tight trading range, below the 50-days SMA and the broken rising trend line, where the bullish bias has weakened. We prefer to move from bullish to neutral for now, as there is a possibility that price resumes the latest bearish wave. We will wait for confirmation over the lower time intervals.
The AUD/USD failed to maintain yesterday’s bullish rebound, to retreat sharply lower, engulfing yesterday’s gains and breaking lower below 0.9300 level. For now, we prefer to move to the sidelines awaiting a confirmation of a bullish rebound as the recent bullish wave continues to be intact, and as price is testing a key support area.
The pair extends the bounce higher, testing 0.8625 level, where we look for new bearish attempts from resistance areas among 0.8625-0.8650. A break above that resistance will probably signal further recovery. For now, we will monitor price action around that resistance for further confirmation.
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